Military Retirement Trust Fund

The Military Retirement System is protected by law while Social Security and FERS is not.  Currently the Military Trust Fund has an unfunded liability of 650 Billion Dollars and by 2026 its projected to be over 1 Trillion Dollars.  However since this Trust Fund is protected by law the government has to make up the difference.  So by 2026 the government will have to come up with at least 1 Trillion Dollars just to get it back to even.  However thus assumes a projected return of 5.75% each year which isn't going to happen unless Interest Rates rise substantially in the coming years.  Thus by the time 2026 arrives this could
easily end up costing the government nearly 2 Trillion Dollars to bailout the Military Trust Fund. 

Finally for those of us under FERS it's not protected by law so keep that in mind for the future.  FERS can be changed at any time and there is nothing we can do about it since it's not protected by law.